ASIA Travel Tips.com

IHG Revises and Extends 130-Hotel Management Contract with Hospitality Properties Trust

Search ASIA Travel Tips .com Send to Friend ASIA Travel Tips.com Latest Travel News Wednesday, 27 July 2011

InterContinental Hotels Group has consolidated, revised and extended its four existing management agreements for 130 hotels with Hospitality Properties Trust (HPT) into one new 25 year management contract. The key terms of the deal are:

The IHG guarantee on the previous contracts has been eliminated and will not be renewed. IHG is funding a security deposit of $37m to cover any future shortfalls to HPTs owner priority returns. This was paid to HPT on 25 July 2011. The balance of the security deposit will be repaid to IHG at the end of the contract;

Up to 42 hotels (6,751 rooms) will be rebranded or sold by HPT, leaving 88 hotels (13,131 rooms) under IHGs brands in the revised single management contract. These hotels will be removed from IHGs system size in 2011 in addition to one hotel which has already been sold by HPT;

HPT will invest $300m to renovate the remaining 88 hotels. These include 3 InterContinental hotels, 6 Crowne Plaza hotels, 2 Holiday Inn hotels, 19 Staybridge Suites hotels and 58 Candlewood Suites hotels.

The net P&L impact to IHG in 2011 and 2012 is immaterial and IHG expects to begin earning base management fees in 2013.

 The new contract is effective as of 1 July 2011.

Chief Executive of IHG, Richard Solomons, said, Our relationship with HPT which commenced in 2003 has been a beneficial one, allowing us, amongst other things, to accelerate our expansion into the fast growing extended stay segment. We are delighted to announce the continuation of this relationship with one of the premier real estate owners in the US through the revision and extension of our management contract. The exit of up to 43 hotels and the $300m investment by HPT in the remaining 88 hotels will leave us with a high quality brand defining portfolio which will be well placed to deliver superior returns to IHG over the long term.

See other recent news regarding: Airlines, Airports, Awards, Flights, Codeshare, FFP, Inflight, Lounges, First Class, Business Class, MICE, GDS, Rewards, Miles, Hotels, Apartments, Promotions, Spas, Yoga, Retreat, New Hotels, Traffic, Visitor Arrivals, Cruises, Free Deals, Interviews, Videos, IHG, InterContinental Hotels Group


Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address above, or return to the Latest Travel News Asia main page to see all the latest headlines. You can also s
tay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Exclusive HD video interview with Ms. Ina Israel of Coco Beach Island Resort in Puerto Galera, Philippines Expansion / Upgrade Plans @ Banyan The Resort Hua Hin, Thailand. Exclusive Interview with General Manager, Khun Sirirat Murphy Exclusive HD video with Ms. Kanyarat Tantiviwat (Tarn), Director of Sales at The Haven Khao Lak Resort in Thailand
Coco Beach Island Resort Banyan The Resort, Hua Hin The Haven, Khao Lak
Exclusive HD video interview with Tin Kyi Min @ Yin Mon Oo, Director of Business Development of Mann Yadanarpon Airlines of Myanmar. Exclusive HD video interview with John Edwards, Executive Chef at The Orchard Wellness and Health Resort in Melaka, Malaysia Exclusive HD video interview with Art P. Boncato JR., Assistant Secretary of Tourism Regulation, Coordination and Resource Generation (TRCRG) at the Department of Tourism of Philippines
Mann Yadanarpon Airlines Exec Chef at Resort in Melaka Philippines Tourism
Exclusive HD video interview with Gilles Flores, General Manager of the Ngapali Bay Villas and Spa in Myanmar. Exclusive HD video interview with Ye Myat Min (Reggie), Commercial Director of Asian Wings Airways, a full service Myanmar-based airline Exclusive HD video interview with Dean Cid, General Manager of the Microtel by Wyndham Mall of Asia in Manila, Philippines
Ngapali Bay Villas Asian Wings Airways Microtel by Wyndham
An exclusive HD video interview about the elegant Airbus A350 XWB with David Velupillai, Marketing Director for Airbus Corporate Jets at Singapore Airshow 2014 Exclusive HD video interview with Ms. Myat Myat Tun, Deputy Director (Reservation/Ticketing & Interline) Commercial of Air Bagan in Myanmar ATR Demonstrates 72-600 Flight Simulator During Singapore Airshow 2014
Airbus A350 Air Bagan (Myanmar) ATR Simulator
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER
Latest Travel News
Advertising
Advertising
© Copyright 1997 - 2015 - ASIA Travel Tips.com - All rights reserved.